A 300,000-barrels-per-day oil refinery and two petrochemicals and a 2,000-megawatt (MW) power plant to be constructed by a Chinese firm in South Iraq could cost nearly $20 billion, an official has said.

OPEC’s second largest producer has awarded three projects in Faw Port to the China National Chemical Engineering Company (CNCEC) on an investment basis, an Oil Ministry official said, quoted by Aliqtisad News network.

The Iraqi government will own 20 percent of those projects, which will cost nearly $20 billion, including around $8 billion for the refinery, the unnamed official said.

Iraqi officials said last week the petrochemical complex has a production capacity of nearly three million tonnes per year.

(Writing by Nadim Kawach; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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